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Further to the Press Release dated 10 March 2000, Santos is pleased to provide further information on this acquisition.

The acquisition will make a material contribution to Santos cashflow, earnings and earnings per share.

While gearing will increase initially, the incremental impact will be reduced by receipt of the operating cashflows from Santos existing activities.

Considerable potential exists to increase Barrow Island reserves and to accelerate production. Barrow Island has original oil in place estimated at over 1,300 million barrels of which less than 25% has been produced. The field also has a long expected life in excess of 25 years.

Potential also exists to increase reserves and production in respect of the Thevenard Island interests.

The properties complement Santos other Carnarvon Basin interests and provide Santos with a strategic position in the three major production hubs in the Carnarvon Basin.

The acquisition continues Santos strategy of diversifying outside the Cooper Basin.

The price of approximately A$240 million or A$5.60 per barrel of oil equivalent (boe) for a portfolio comprising almost 90% oil reserves is attractive compared with other recent transactions of comparable size in the sector.